Bank of America top pick by rival firms

Bank of America's first-quarter earnings may not blow investors away, but they may be the best of what is likely to be a lackluster bank earnings season.

The Wall Street Journal reports that analysts at Goldman Sachs and Deutsche Bank are out with first-quarter earnings previews earlier this week, predicting lacklustre results from the largest U.S.

Amid the gloom, both Goldman’s Richard Ramsden and Deutsche Bank’s Matt O’Connor cited Bank of America’s stock as a top pick and expect it to rise on the back of its first-quarter earnings. Messers. Ramsden and O’Connor mostly like Bank of America’s stock because it has been battered this year, falling nearly 14% in 2015 compared to the KBW Bank Index, which has dropped 4%. The S&P 500, by contrast, is basically flat this year.

Still, O’Connor sees some other reasons to buy Bank of America’s stock: 'BAC remains the best large bank play on a stronger US economy/higher rates and has good leverage to rising capital markets revenue (including FICC). BAC has also made good progress reducing legacy mortgage costs (with more to come) and core expenses'.

To access the complete Wall Street Journal article hit the link below:

Goldman, Deutsche Bank Cite Bank of America as a Top Stock Pick

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